Updated | Zaren Vassallo denies discussing Lowenbrau land transfer with Jason Azzopardi

Developer Nazzareno Vassallo has dismissed claims that he had meetings with former PN minister of lands Jason Azzopardi over the transfer of the Lowenbrau brewery in 2012, or to having reached some sort of agreement with the Nationalist MP.

Vassallo, a PN donor who is the chairman of the Vassallo Builders Group, issued a statement on Sunday, denying claims made by justice minister Owen Bonnici. On Saturday, the minister claimed that he had “sworn information” that confirmed that Nationalist MP Jason Azzopardi had met the developer ahead of a 2012 transfer deal which saw the site of the former brewery sold at 1990 prices – a mere €706,400 – instead of the €8 million it was valued at when the transfer was made.

I have just read Mr Zaren Vassallo's press release. I stand 100% by what I said yesterday.

— Owen Bonnici (@OwenBonnici) January 8, 2017

Bonnici further claimed that the sale was approved by Azzopardi himself after the former PN minister assured construction magnate Vassallo that a compromise would be reached.

“I categorically deny ever having had meetings with Azzopardi or reaching some sort of agreement with him. I never discussed this issue with Azzopardi when he was minister for lands or since. This also applies for the members of his secretariat,” he said.

Vassallo also said that the “sworn information” that Owen Bonnici had mentioned to back the allegations was a “false oath”.

In reaction to Vassallo's comments, Bonnici said that he is "standing by 100% by what he said.

Auditor General Report: Vassallo got public land for cheap

The comments were made by Bonnici in the wake of a damning report by the Auditor General into the 2009 land transfer which showed that Zaren Vassallo, got public land for cheap, while also highlighting gross shortcomings in the process.

The NAO claimed that the €8 million site was illegally transferred to Marsovin so that they could then sell it off to Vassallo Builders.

The plot of land in Qormi, which today is used for a wedding hall and conference centre, measuring approximately 21,000 square metres, was originally granted Löwenbräu Ltd by the Government of Malta on 13 November 1990.

Then-minister for economic affairs, George Bonello du Puis, had established that the allocation was to be made on a perpetual basis against the annual payment of a non-revisable ground rent of Lm 10,000 (€23,294). The contract stipulated that the land was to be used specifically for the production of alcoholic and non-alcoholic beverages.

In 2009, Marsovin – the owners of LBM Breweries – entered into a contract with Nazzareno Vassallo, the owner of Catermax, to sell him the land in question once they redeemed the ground rent. In allowing the redemption of the ground rent, the Lands Department also waived the condition that the land was to be used specifically for a beverages plant – the direct dominium – and with that any premium to be paid for such a waiver.

In 2011, after the matter was brought to the attention of the House of Representatives by Labour MP Charles Mangion, the Commissioner for Lands notified Catergroup Ltd (LBM Breweries Ltd) that it would be seeking to annul the 2009 agreement.

Bonnici claimed it was at this point that Azzopardi interfered directly, so that the legal procedures were halted on 30 January, 2012 and three architects appointed to establish the true value of the transaction.

This committee of architects had established the cost of the withdrawal of the original direct allocation conditions based on 1990 values, leading to a valuation of €706,400, Bonnici said, when the Auditor General concluded that the land was in fact worth €8 million.